STRA Dividend Type Payments

Strategic Education, Inc dividend

Although STRA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Strategic Education, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Strategic Education, Inc (STRA)
Bid Ask Last Change Volume P/E Market Cap
101.15 128.50 128.50 +1.52 419K - 0.0B

STRA Dividend-Like Income Using Covered Calls

With STRA at 128.50, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.86 1.1
5% 6.43 1.8
10% 12.85 3.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On STRA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 135.00 0.15 8 1.9 6.50 (5.1%)
Jan 18 140.00 0.85 36 2.4 11.50 (8.9%)
5% Yield On STRA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 135.00 0.15 8 1.9 6.50 (5.1%)
Jan 18 140.00 0.85 36 2.4 11.50 (8.9%)
10% Yield On STRA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 130.00 1.15 8 14.4 1.50 (1.2%)
Jan 18 135.00 1.95 36 5.4 6.50 (5.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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